Using Stock to Fund your DCS Membership

A growing number of Director’s Circle Society members fund their membership by donating publicly traded securities that they have owned for one-year or longer to Connecticut Opera. The example below demonstrates the tax implications of selling appreciated securities and donating the proceeds vs. contributing the securities directly.

Example: Donor owns long-term capital gain securities with a market value of $5,000 and a cost basis of $1,000 and wishes to support Connecticut Opera. Donor has the option of gifting cash or donating the stock to Connecticut Opera.

1. Donor sells the securities and donates the net sales proceeds:

Capital gains tax paid by Donor: $600
Net gift Connecticut Opera: $4,400
Charitable Deduction for Donor: $4,400

2. Donor transfers the securities to Connecticut Opera:

Capital gains tax: $0
Net gift to Connecticut Opera: $5,000
Charitable Deduction for Donor $5,000

As this simple example demonstrates, by contributing the securities to Connecticut Opera, the Donor makes a larger gift and thereby receives a larger charitable income tax deduction. Please consult your tax advisor for actual tax benefits available to you.

To donate a gift of stock, please instruct your broker to contact Dave Judy, Director of Development, at (860) 527-0713, Ext. 311 for specific instructions.